No. 366, March 2000

Japanese Companies in the US

FOOD AND AGRICULTURAL PRODUCTS

Through a series of acquisitions dating back to 1981, MITSUKAN
CO., LTD. has emerged as the U.S. sales leader in food vinegars. It
recently solidified this position through the $13.8 million or so
purchase of SPEACO FOODS, INC. The Kansas City,
Missouri-headquartered company has plants in Rogers, Arkansas, Lodi,
California and Dallas as well as in Kansas City. In addition to
producing an assortment of vinegars, Speaco Foods makes such other
products as ciders, sauces, condiments and juices. Sales,
particularly to private-label grocery wholesalers and retailers, run
around $20 million a year. Not only does the Speaco Foods purchase
boost the market share of NAKANO FOODS, INC., the actual buyer, to 37
percent, but it gives the Arlington Heights, Illinois-based company
production capacity through the middle of the United States,
complementing its eight factories on the East and West Coasts. Nakano
Foods specializes in value-added products, such as seasoned vinegars.
For that reason, while it is the sales leader, it ranks a distant
second to San Francisco's BURNS PHILP FOOD, INC. in terms of volume.